BASICS - What is Bitcoin

BITCOIN BRIEFLY

  • DECENTRALIZED - you are your own banker (no middlemen ... full control over you own finance, annonymous payments, whenewer, to whoever)

Advice to start


  • BACKUP your wallet and store it safely
  • before investing/trading doublecheck the site reputation at BadBitcoin
  • count with TRANSACTION FEE (no fee for offchain transactions like between COINBASE or XAPO accounts)
  • AVOID CLOUD MINING (if there is FREE GHs to start = 99.9% SCAM)
  • AVOID MINING overall (unless you have capital to invest) mining device is expensive and profit minimal

Mining

despite Starting advice still WANT TO MINE BITCOINS?
Then we recommend Nicehash (mining altcoins using GPU with automatic transfer to BTC )
To mine directly BTC you need some ASIC miner Antminer, Avalon or Ebit etc. ( if you have expensive electricity try some hosting companies like Bitclouder, Colohub nebo Sinohash)
Alternatively you can rent hashpower with BIXIN, HASHNEST or BW (all are chinese companies)


BITCOIN IN DETAIL

Bitcoin is a software-based online payment system described by Satoshi Nakamoto in 2008 and introduced as open-source software in 2009. A peer-to-peer client records transactions in a shared, public ledger denominated in its own unit of account, which is also called bitcoin. Because it lacks a central repository or single administrator, the US Treasury has called bitcoin a decentralized virtual currency. Media reports often refer to bitcoin as a cryptocurrency or digital currency. Bitcoin's status as an actual currency is disputed as it does not have all the attributes of money. Bitcoin is first cryptocurrency and the largest in terms of total market value although others such as Litecoin and Dogecoin also exist. Bitcoin is not the first virtual currency, however.

Bitcoins are created as a reward for payment processing work in which users offer their computing power to verify and record payments into the public ledger. This activity is called mining and is rewarded by transaction fees and newly created bitcoins. Besides mining, bitcoins can be obtained in exchange for fiat money, products, and services. Users can send and receive bitcoins electronically for an optional transaction fee.

Bitcoin as a form of payment for products and services has grown, and merchants have an incentive to accept the digital currency because fees are lower than the 2–3% typically imposed by credit card processors.[21] The European Banking Authority has warned that bitcoin lacks consumer protections. Unlike credit cards, any fees are paid by the purchaser, not the vendor. Additionally, bitcoins can be stolen, and chargebacks are impossible. As of July 2013, the commercial use of bitcoin was small compared to its use by speculators, which has contributed to price volatility.

Bitcoins are sometimes used to purchase illicit items—including child pornography, credit card details, and drugs—at deep web black markets and are seized by authorities when such sites are shut down. In June 2014, GQ journalist Marshall Sella concluded that what remained of the Silk Road black market site was one of the few places where you could purchase items for bitcoin.

The United States is considered more bitcoin-friendly than some other governments. US law enforcement officials and financial regulators, who had emphasized the role of bitcoin in criminal activities prior,[28] recognized at a November 2013 U.S. Senate hearing on virtual currencies that cryptocurrencies such as bitcoin can provide legitimate financial services to customers. Developing countries are less receptive. For example, in China buying bitcoins with yuan is subject to restrictions, and bitcoin exchanges are not allowed to hold bank accounts.